Gunn Manufacturing Company experienced the following accounting events during its first year of operation. With the exception of the adjusting entries for depreciation, assume that all transactions are cash transactions.

Explain how these events would affect the balance sheet and income statement by recording them in a horizontal financial statements model as indicated here.

GUNN MANUFACTURING COMPANY 1. Acquired cash by issuing common stock Paid for materials to make products Paid salaries to selling and administrative employees Paid wages to production workers Paid for furniture in selling and administrative offices Salvage value of furniture Useful life of furniture (years) 6. Paid for manufacturing equipment Salvage value of equipment Useful life of equipment (years) Sold inventory to customers Cost to make inventory sold 80,000 9.200 3.800 12.000 9.600 1.600 16,000 1,000 38,000 18.000